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Updated 8 months ago,

User Stats

41
Posts
28
Votes
Seo Hui Han
28
Votes |
41
Posts

70% equity and 30% debt. Should 1031 into similar?

Seo Hui Han
Posted

i have a commercial property that I'm considering unloading.  Equity position currently 70%.   Would like to 1031 into a multifamily in Orange County.  I've done the math and if I go into a property with a 4% cap keeping the same equity/debt ratio, I think I can cashflow pretty well.

My question is:  is this advisable?  I hear about everyone going 20 or 30 percent down and not being able to cashflow.  I'd like to both appreciate and cashflow, and by going with a huge down payment, I think I can do it, even in Southern California.

BTW, I am a newbie, kind of fell *** backwards into my current situation, and would like to grow my inadvertant good fortune.

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